Financing Advisory

Financing Overview

There are dozens of different financing types and structures available to buyers looking to purchase a practice or businesses looking to improve and grow their business. Having closing over $500 million of committed financing for businesses and more than $1 billion of successful syndications, we have the expertise and experience to help our clients obtain financing in a structure and costs which fits their needs. Major categories we help clients with include:

Bank Loans

Lenders tend to have a favorable view of the medical and dental industries as theses are jobs and services which cannot be outsourced to another country or replaced by machines, there are favorable population demographics, and the strong earning potential for doctors and dentists make them attractive lending candidates. As such, there are numerous national and regional banks and finance companies (some exclusively focused on healthcare) looking to lend money to doctors, dentists and healthcare businesses. We have an extensive network of quality lenders and can help you secure financing at competitive rates.

Seller Loans

It is not uncommon for small businesses and healthcare practices to be sold with the seller financing a portion of the purchase. Depending on the circumstance, this type of transaction might be right for you. For the buyer, this reduces the amount of upfront cash and limits some uncertainty associated with attaining a traditional bank loan. For the seller, this can reduce the amount of time it takes a business to sell, reduced the number of outside parties involved in the transaction, and can provide a stream of cash flow after the business is sold. That said, seller loans have their own set of risks and drawbacks for both buyers and sellers so its important to have a firm understanding of you options and see if it is a good fit.

Equity Investments

Equity investments generally occur when an investor provides capital or services in exchange for an ownership interest in the business. Equity investments in business tend to be more flexible and have fewer restrictive terms as compared to a bank or seller loan, however, the expected return for equity investors is often a higher rate than a loan.

Leases

Leasing can be an attractive option for business owners for certain aspects of their business. In general, leases provide a business owner with enhanced flexibility, potential tax benefits, lower upfront costs and limit risk. However, leasing can be more expensive over the long-run, you don’t own the item, and there might be restrictions or limitation on the use and maintenance of the item being leased.